US-China Technology Industry Sanctions Trigger Risks

<p>&nbsp;The tension that continues to rise between the United States and China is getting worse when the "White House" has announced plans to restrict the United States' investment in technology companies in China.</p><p><br /></p><p>In response to this regulatory landscape, the Chinese internet giant is beginning to acquire high-performance Nvidia chips where the chips are an important component in the construction of generative artificial intelligence (AI) systems.</p><p><br /></p><p>As a result of the "White House" sanctions plan, major players in China's technology industry, including Baidu, ByteDance, Tencent, and Alibaba, have collectively bought around $1 billion to acquire approximately 100,000 A800 processors from Nvidia.</p><p><br /></p><p>The shipment of this processor is expected to happen within this year.</p><p><br /></p><p>Apart from these initial purchases, these Chinese entities have also booked an additional $4 billion worth of orders for graphics processor units, which are scheduled to be delivered in 2024.</p>